Enterprise AI stocks tend to represent companies that focus on solving complex business problems by leveraging powerful algorithms. Consumer AI, on the other hand, tends to be less complex and deals primarily with user interface and experience overall. Stocks representing companies in both realms represent incredible opportunities.
However, this article will focus on stocks representing companies powering the enterprise AI boom. So, just how big is the opportunity overall? The market is expected to grow at a CAGR of 44.1% between 2023 and 2032. That will bring the overall value above $270 billion. The opportunity is crystal clear so let’s look at a few strong stocks leading the way.
Palantir (PLTR)
There’s so much that could be discussed in relation to Palantir (NYSE:PLTR) stock as it relates to enterprise AI. For example, the partnership between Oracle (NASDAQ:ORCL) and Palantir.
Oracle is noted for the strength of its distributed cloud and AI infrastructure. Meanwhile, Palantir’s strength lies in its AI and decision acceleration platforms. The two firms forged a partnership to leverage those respective capabilities and build solutions for government partners.
The point I’d like to focus on here is the characterization of PLTR as a strong decision acceleration platform. Remember, enterprise AI requires the most complex and powerful algorithms leveraged to solve enterprise scale problems. Palantir has emerged as one of the strongest firms in that realm.
Take the recent downturn in share prices at Palantir as the opportunity that it is. It’s a company that hit profitability far sooner than anyone could have expected and is bound to continue to grow moving forward.
Baidu (BIDU)
Baidu (NASDAQ:BIDU) is currently one of the more interesting stocks available to investors. It looks like Chinese stocks are finally reemerging. The nation’s tech leaders continue to do well despite a choppy economy overall.
Baidu is one of the very best AI opportunities for investors interested in China. The company touts its full AI stack encompassing a complex infrastructure of computing needs.
The company’s ERNIE bot is a particular bright spot. BIDU reported that it had 26,000 enterprise AI clients for that bot late in February. That represented a 150% increase over the previous quarter.
Generally speaking, Chinese firms have lacked behind their North American counterparts when it comes to generative AI. Baidu is working hard to change that and its recent investment in enterprise AI makes it particularly noteworthy.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) remains at the forefront of most things artificial intelligence. The ubiquity of its chips across artificial intelligence applications has caused the stock to soar. It’s clear from the most recent earnings report that the opportunity in Nvidia is not going away anytime soon. What is also very clear is that Nvidia is among the most important enterprise AI stocks overall.
Most enterprise AI workloads are performed at hyperscale data centers. That is exactly where the majority of Nvidia chips are being sold. $22.6 billion of Nvidia’s $26 billion in first quarter sales was attributable to data center sales.
Nvidia produces the most powerful chips and those chips are leveraged for the most complex challenges. Again, those challenges manifest at the enterprise AI level where solutions are the most complex. The continued enterprise AI opportunity is one more indication that Nvidia is the best of the best in relation to enterprise AI stocks.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
